The price target for Amazon (NASDAQ:AMZN) was raised to $145 from $125 at Telsey Advisory Group on Wednesday, with analysts reiterating an Outperform rating on the stock.
The analysts said they believe Amazon's Prime Day, which we are currently in the middle of, "created a spark of spending across retail."
"The company seems to have successfully leveraged its relationship with brands—which have seen softer trends due to a tough environment—to offer good deals and attract shoppers," explained analysts.
The firm believes Amazon's Prime members took advantage of promotions across multiple categories, including select products from premium brands, such as Apple, Dyson, Gap, Lancôme, Victoria's Secret, and YETI.
"We expect Amazon Prime Day 2023 sales to grow in the HSD-LDD area, generating incremental sales of ~$5B and total sales of $7B-$8B. The timing of the event matched last year—July 11-12, 2023 vs. July 12-13, 2022—but a larger Prime member base (200MM+ globally), more operating markets, and a wider product assortment helped fuel growth," the analysts added.